Russia is in third place in the world for remittances sent home by migrant workers. For this indicator, it is second only to the United States and Saudi Arabia.
International Fund for agricultural development (IFAD) of the UN office, whose headquarters is in Rome, published the report «Sending money home: a Contribution to the sdgs». This is the first such research contains a lot of interesting information on remittances sent home by migrant workers in the years 2007-16.
Sdgs – sustainable development goals (SDG), a set of 17 global goals for the future of international cooperation in the fight against poverty. They are contained in the UN programme «Transforming our world: an Agenda for sustainable development for the period till 2030».
In 2016, around 200 million migrant workers, nearly half of whom are women, were sent home, mostly in developing countries, 445,3 billion. The increase compared to 2007 (296 billion.) amounted to 51%. It is expected that this year the total amount of remittances will exceed 450 billion, the report Authors predict that in the years 2015-30 migrant workers send home to countries with low and middle income, 6.5 trillion dollars.
«The aging population in developed countries, the demand for migrant workers in the coming years will grow,- said Pedro de Vasconcelos, Manager of the Financial division of IFAD for the translations and the head of group of authors of the report.- Remittances can help migrant families to create a more secure future and to make the work of migration of young people more of a choice than necessity.»
The growth of the workers-migrants in 2007-16 amounted to 28% and significantly lagged behind the growth of remittances. Even more lagged behind the population growth of the countries from which they went to work. The population has grown over 10 years at 13%.
The amount of remittances has increased in almost all regions of the world. Led by Asia, where growth is sent home by migrant workers money was 87%. The number of working migrants during the same period increased by 33%. The lowest rates are in Europe – 5 and 19%, respectively.
Flows of labor migration and remittances of migrant workers have a profound impact on the world economy and political landscape of the planet. The total earnings of migrant workers is estimated at approximately 3 trillion dollars a year. Approximately 85% of this money stays in the countries where they earn them. The money sent home, and do not exceed 1% of the GDP of these countries.
The total amount of remittances more than three times larger than official assistance development (ODA) from all sources. It also exceeds the total amount of foreign direct investment in almost all countries with low and middle income.
Remittances of migrant workers – a multibillion-dollar business. Its scale is justified by the cost of sending money. They now exceed 30 billion dollars a year. The highest rates in the poorest countries and remote rural areas. The lowest rates – less than 2% in Russia migrant workers from Central Asia. The highest in South Africa. 14,6%. The average cost of sending remittances in 2016 made up 7.45%. In 2008, this figure was 9.8 per cent. Tariffs are falling, but slowly, and more recently the decline in completely stopped. Meanwhile, according to the sdgs by 2030, they should fall below 3%.
The remittances of migrant workers is one of the main means of combating poverty. Thanks to these billions, millions of people in developing countries left the ranks of the poor. Now more than 200 million migrant workers who support approximately 800 million relatives and friends. In the process of sending and receiving money this year involved one billion people, i.e. every seventh inhabitant of the Earth.
«About 40% of transfers, or $ 200 billion go to areas where it hadonthe majority of the population is poor, says Pedro de Vasconcelos.- This money goes to buy food, pay for medical bills, education and improvement of living conditions».
«It’s not just a question of sending money home,- reads the statement of the President of IFAD Gilbert Hongbo, former Prime Minister of Togo, who was elected to this position in February 2017.- Most importantly – a huge impact on their lives. Small transfers in the amount of from 200 to 300 dollars that migrant workers send home account for nearly 60% of the income of their families at home. This money is very much change the lives of loved ones of migrants and the places where they live.»
The top five recipient countries of remittances from migrant workers in 2016 was part of India (62,8 billion us dollars), China (61), Philippines (29,9), Mexico (28,5) and Pakistan (19,8). In Europe, the main recipients of transfers in the last year were Poland ($6.8 billion) and Ukraine with Russia (6.2 billion). For the first 23 countries in the list of «recipients» accounted for more than 80% of all transfers. In 9 countries the amount of remittances exceeds 20% of their GDP, and 71 — 3%. More than 100 countries receive from their citizens working abroad, more than 100 million dollars annually.
Russia is also in the top ten «sender», which accounts for nearly half of remittances sent. Our country is in the list, third place (19.7 billion dollars in 2015). Ahead of only the United States and Saudi Arabia, behind the UAE, Germany, Kuwait, France, Qatar, UK and Italy.